Australia’s bold and sustained agricultural reforms are providing a roadmap for developed countries. This is particularly relevant for those seeking to reduce subsidies and tariffs. According to a new ABARES Insights paper, this is important.
Over the past 50 years, Australia has transformed its agriculture sector by focusing on innovation, productivity, resilience, and open markets. As a result, what was once a highly protected industry has turned into a globally competitive powerhouse.
ABARES Executive Director Dr Jared Greenville said the Australian experience offers valuable lessons for other nations.
“Like many developed countries today, our sector once relied on high levels of distortionary support and rigid marketing systems,” Dr Greenville said. “These structures restricted productivity and international competitiveness. Reform changed that.”
Before the shift, Australia operated around 60 marketing authorities controlling the pricing and sale of agricultural products. Today, the industry is market-driven, adaptable, and more resilient to global changes.
“Our journey demonstrates that reform is achievable,” Dr Greenville added. “Through consensus-building, coherent policy, and redirecting agricultural support into research and innovation, Australia built a thriving, sustainable farm sector.”
The results are clear: between 1990 and 2024, real incomes grew 1.6% annually for broadacre farms and 1.5% for dairy. Additionally, the real gross value of farm production rose by 80% over the last five decades.
The report encourages policymakers worldwide to explore repurposing subsidies towards innovation. This can drive similar success stories in their own countries.
For the full report, visit www.agriculture.gov.au/abares/products/insights/repurpose-agricultural-support.
